06 September 2007 17:15 [Source: ICIS news]
By Kawai Wong
LONDON (ICIS news)--European naphtha was being supported by tumbling US gasoline stocks despite weak petrochemical support and no arbitrage options, market sources said on Thursday.
Over the past fortnight naphtha has risen around $63, pushed up by higher gasoline prices caused by refinery maintenance and recent production outages in the ?xml:namespace>
“The naphtha market is not that strong, but gasoline was keeping it supported,” one trader said.
Open spec naphtha cargoes were assessed at $680-685/tonne CIF (cost, insurance and freight) NWE (northwest
The Energy Information Administration (EIA) reported a 1.5m barrel fall in gasoline stock from the previous week. This followed a 3.6m barrel drop the week before, heightening concerns in the market.
Benchmark 10ppm gasoline barges in
The rise in European gasoline values have not permitted arbitrage exports to the
One naphtha trader said gasoline was confusing the European naphtha market, which was currently facing relaxed demand from the petrochemical sector and no arbitrage options out of
The petrochemical sector has been in holiday mode in recent weeks with a number of turnarounds in the industry and holiday commitments had led to quiet spot markets, traders said.
However, most turnarounds were expected to be completed by mid-to-end of September and most traders and brokers would have returned from summer holidays by that time.
Arbitrage options for naphtha out of Europe have been closed since May in line with a higher level of exports from
Arbitrage options to
The first half October contract in Asia closed at $678-679/tonne CFR (cost and freight)
($1 = €0.73)
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